Credit Karma pauses “almost all new hiring” citing revenue challenges
Fintech firm Credit Karma is pausing “almost all new hiring”, according to an internally circulated email seen by FinTech Futures.
In the email sent to all employees, Colleen McCreary, Credit Karma’s chief people officer, says the company continues to face “revenue challenges due to the uncertainty of the macroeconomic environment”.
The email says the company has increased its headcount by approximately 30% since the beginning of FY22, with an additional 100 people who have either been extended a job offer or accepted one.
“Given the uncertainty of the economy and the addition of 500 new Karmanauts in the past five quarters, we’ve decided to pause almost all new hiring,” McCreary writes.
The email adds the current situation is different from 2020, when the firm avoided layoffs during the pandemic by cutting salaries while waiting for the Intuit acquisition to close. Credit Karma was acquired by Intuit in November 2020 for $7.1 billion.
“We’re not doing pay cuts, we’re not cutting back on PDP, we’ll still have holiday parties and the coffee bar, and if someone departs Credit Karma moving forward, we’ll look to see if we should backfill that specific position or somewhere else within Credit Karma,” McCreary writes.
On reaching out for a comment, Credit Karma shared a press release on behalf of Intuit, where it states it expects to report Q1 results “above guidance”. However, it also states that “all Credit Karma verticals have been negatively impacted by macro uncertainty”.
“Credit Karma experienced further deterioration in these verticals during the last few weeks of the first quarter,” Intuit adds. Additional details will be provided on 29 November, when Intuit will report its earnings.